City public relations firm Financial Dynamics has been sold to US operation FTI Consulting. The cash and shares deal values Financial Dynamics at US$260m (£140m). The cash element makes up US$215m of the total.
Three years ago, private equity investor Advent International backed the business’s management buyout from ailing marketing group Cordiant Communications for £26m.
Financial Dynamics executives held a 57% stake in the company worth £62.7m, while Advent receives £47m in cash. That is nearly 5.9 times its initial investment of £8m.
Financial Dynamics’ chief executive Charles Watson will continue to run the business from London. The business, which boasts 750 clients and 450 employees, is predicted to make a US$34m pre-tax profit on income of US$120m this year.
Robert W Baird advised Financial Dynamics on the transaction. Deutsche Bank acted for FTI.